Rising profits on tanker rates

China Shipping Development Co., the nation's largest oil carrier, said third-quarter profit rose 28 percent, lifted by the country's rising imports of crude.

Crude imports rose 8.8 percent in the first nine months of the year

China Shipping Development Co., the nation's largest oil carrier, said third-quarter profit rose 28 percent, lifted by the country's rising imports of crude.

Net income climbed to 1.54 billion yuan ($225 million), or 0.45 yuan a share, from 1.21 billion yuan, or 0.36 yuan, a year earlier, the Shanghai-based company said in a statement to the city's stock exchange today, citing domestic accounting standards.Sales rose to 5 billion yuan from 3.2 billion yuan.

The Baltic Dirty Tanker Index, a measure of chartering rates, rose 67 percent in the year ended Sept. 30, helped by rising demand for gasoline and other fuels in China, the world's second- largest energy user. The country's crude imports rose 8.8 percent in the first nine months of the year.

Gains were eroded by declining bulk rates caused by the launch of new vessels increasing global capacity and Chinese steelmakers curbing production on slowing demand. The Baltic Dry Index, a measure of rates for carrying coal, iron ore and other commodities, fell 66 percent in the year ended Sept. 30.

Rates for moving commodities may also decline next year, Zhao Yingtao, general manager of China Shipping (Group) Co.'s transportation division, said on Oct. 16. The company is China Shipping Development's parent.

China Shipping Development operated 56 tankers and 116 bulk ships as of June 30. Another 66 vessels were due to be delivered by the end of 2012.

The company has boosted cooperation with its largest customers, such as Baosteel Group Corp. and PetroChina Co. through ventures and long-term contracts, it said in August.

China Shipping Development dropped 1 percent to HK$5.92 in Hong Kong trading before the earnings announcement, extending losses for the year to 71 percent. That compares with a 78 percent decline for China Cosco Holdings Co., the country's largest bulk-shipping line.

In Shanghai, China Shipping Development slipped 1.6 percent to 7.62 yuan. The stock has dropped 79 percent this year.